February 6, 2007
Financial Freedom Closed Record Number of Reverse Mortgages in 2006
Contact:
Frank Piemonte
River Communications
914.686.5599
fpiemonte@riverinc.com
Financial Freedom Closed Record Number of Reverse Mortgages in 2006
-- Industry Leader Closes 10th Year by Expanding Market Share --
Irvine, CA, (February 6, 2007) – Financial Freedom, a subsidiary of IndyMac Bank F.S.B. (Indymac Bank®), is the largest originator of reverse mortgages in the United States. Financial Freedom originated $5 billion in loan fundings on $15.2 billion in home value in reverse mortgages in 2006 and is now the largest servicer of reverse mortgages with a servicing portfolio of approximately 116,00 loans. The company closed 48,954 reverse mortgage loans in 2006, representing a 57% increase over volume in 2005 when the company closed a record 30,995 loans.
Total loan production in the industry for the fiscal year ending September 30, 2006, was 76,351 Home Equity Conversion Mortgages (HECMs) compared to 43,131 HECMs the prior year, according to the Federal Housing Administration (an arm of the U.S. Department of Housing and Urban Development), which insures the loans.
Financial Freedom is the nation's largest lender of reverse mortgages, and has been for the last 10 years. Financial Freedom has dominated the industry and continues to maintain a market share of over 50 percent.
"The home is a significant asset and more consumers are continuing to recognize that through a reverse mortgage, the home can play an important role in funding retirement alongside 401(k) plans, pensions and personal savings," said Jim Mahoney, Chairman of Financial Freedom. "Since reverse mortgages provide a new option for seniors facing all types of financial challenges from health care costs to longer life spans, we expect the industry to continue its impressive growth and for reverse mortgages to become a standard part of the retirement planning discussion."
Financial Freedom's loan volume is comprised mainly of FHA's Home Equity Conversion Mortgage, the predominant reverse mortgage product in the marketplace, and the Financial Freedom Cash Account, the first ever jumbo reverse mortgage designed for homes in excess of $450,000 in value.
Reverse Mortgages Explained
Reverse mortgages enable senior homeowners 62 or older to access a portion of the equity in their home without having to sell the home, give up title, or take on a new monthly mortgage payment. Borrowers will never, under any circumstances resulting from the reverse mortgage, be forced to leave their homes providing they make their real estate property tax and insurance payments and maintain the property in reasonable condition.
Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for up to life on the government-insured HECM program), line of credit, or any combination of the three, depending on the program. Borrowers can use the funds anyway they wish and will not make any monthly mortgage payments on a reverse mortgage during the life of the loan. In addition, the repayment amount cannot exceed the value of the home. The loan becomes repayable when the borrower sells the home or permanently moves out.
About Financial Freedom
Financial Freedom Senior Funding Corporation, a subsidiary of IndyMac Bank, F.S.B., headquartered in Irvine, California, is the largest originator of reverse mortgages in the United States. Financial Freedom originated over $5 billion in loan fundings on $15.2 billion in home value in reverse mortgages in 2006 and is now the largest servicer of reverse mortgages with a servicing portfolio of approximately 116,000 loans.
Financial Freedom developed the industry's first reverse mortgage software, the Reverse Mortgage Analyzer, to help lenders compare the benefits between the HECM, Fannie Mae and the Cash Account products. The Reverse Mortgage Analyzer has been a powerful tool since 1997 and is the industry standard with more than 28,000 registered users. In addition, this RMA software application has been used to train counselors.
Financial Freedom is also founding member of the National Reverse Mortgage Lenders Association. NRMLA is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued evolution of reverse mortgages as an important financial option for senior homeowners while educating both its members and consumers about the varied applications of this unique loan. For more information, visit the Financial Freedom Web site at www.financialfreedom.com.
Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors. For more information, visit the NRMLA Web site at www.reversemortgage.org.
®2007 Registered trade/service marks are property of Financial Freedom Senior Funding Corporation, A Subsidiary of IndyMac Bank, F.S.B .
©2007 Financial Freedom Senior Funding Corporation
About IndyMac Bancorp, Inc.
IndyMac Bancorp, Inc. (NYSE:NDE) (Indymac®) is the holding company for IndyMac Bank, F.S.B. (Indymac Bank ®), the 7th largest savings and loan and the 2nd largest independent mortgage lender in the nation. Indymac Bank, operating as a hybrid thrift/mortgage banker, provides cost-efficient financing for the acquisition, development, and improvement of single-family homes. Indymac also provides financing secured by single-family homes and other banking products to facilitate consumers' personal financial goals.
With an increased focus on building customer relationships and a valuable consumer franchise, Indymac is committed to becoming a top six mortgage lender in the U.S. by 2010, while maintaining annualized earnings per share growth in excess of 15 percent. The company is dedicated to continually raising expectations and conducting itself with the highest level of ethics.
IndyMac Bank also offers a wide array of Web-enhanced banking services, including deposits, competitive CD and money market accounts, and online bill payment services. IndyMac Bank is FDIC insured.
For more information about IndyMac and its affiliates, or to subscribe to the Company's Email Alert feature for notification on company news and events, please visit our Website at www.indymacbank.com.
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